SMHI Stock Recent News

SEACOR Marine Holdings reported another set of disappointing quarterly results with sizeable cash usage and profitability falling well short of expectations. The company is facing persistent weakness in the domestic market. In addition, capacity challenges at shipyards and vendors have resulted in drydockings taking longer than expected. Moreover, the pace of year-over-year dayrate improvement has slowed down in Q2.

Seacor Marine (SMHI) came out with a quarterly loss of $0.45 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to loss of $0.17 per share a year ago.

HOUSTON, July 31, 2024 (GLOBE NEWSWIRE) -- SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its second quarter ended June 30, 2024.

Seacor Marine (SMHI) came out with a quarterly loss of $0.84 per share versus the Zacks Consensus Estimate of a loss of $0.43. This compares to loss of $0.36 per share a year ago.

The OSV market is expected to face a deficit due to low order book levels and declining shipyard capacity, but growing demand from deep-water protects. SEACOR Marine is one of the major players in the industry. The company owns a fleet of 59 vessels at an average age of 9.1, operating globally. In September, the company signed a new $122 million secured credit facility. It consolidated five separate facilities, with maturities in 2023-2026. The consolidated maturity is moved to 2028.

Shares of leading offshore transportation services provider SEACOR Marine Holdings reached a new 52-week high last week. Three weeks ago, the company managed to refinance an aggregate $104.6 million in near-term debt maturities with a new $122 million secured credit facility provided by affiliates of EnTrust Global. Unfortunately, terms of the new credit facility are less-than-stellar with SEACOR being required to pay interest at a rate of 11.75% p.a., substantially above the average of the refinanced facilities.

The leading offshore support services provider reported decent first quarter results with revenues, average day rates, direct vessel profit, and EBITDA reaching new multi-year highs. With average day rates fleet utilization anticipated to improve further, the company should start to generate meaningful free cash flow over the coming quarters. A debt refinancing at improved terms could provide a near-term catalyst for the stock.

Initiating coverage of leading offshore support services provider SEACOR Marine Holdings ("SEACOR"). Discussing recent debt and liquidity management actions. Company managed to extend its runway by three years without diluting common shareholders.